a hacker attacks kucoin. will kucoin refund you if you're hacked?

Will KuCoin Refund Me if I get Hacked?

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TL;DR– Tons of people search monthly about getting their KuCoin hack refund. If you believe you’ve had funds stolen out of your account, the truth is there’s not much you can do- with the exception of a giant exchange-wide hack event that’s affected hundreds of users. Unlike Coinbase, which carries $250,000 of FDIC insurance on ALL its crypto accounts, KuCoin has less robust controls in place for fund replacement.  

KuCoin

KuCoin has become the fourth largest digital asset exchange by volume over the past few years, with over 25% of crypto traders using KuCoin.

KuCoin does have an insurance fund to protect itself against major exchange-wide hack events. That is if someone got access to their server information and looted a lot of wallets (usually hundreds or thousands of wallets and millions of dollars).

Types of hacks that occur on KuCoin 

Phishing attacks

Phishing scams are, by and large, the most common type of attack. All an attacker needs are for you to click a link, and he takes control of your computer. If you’re already signed in to KuCoin on your computer, the hacker would go onto your KuCoin and send your crypto funds to his wallet.

With a phishing scam, attackers don’t even need your secret recovery phrase. There are also malicious phishing websites populated with several links to hijack your computer.

Exchange-Wide hacks

Only a handful of exchange-wide hacks have happened over the years with KuCoin. If your funds are missing, do a quick Google search of “KuCoin Exchange Hacked” and see if any recent news headlines come up on Google News. 

If KuCoin has recently suffered an exchange-wide hack- you’re probably in luck. KuCoin will likely restore your funds. 

Negligence

Thousands of people lose their crypto funds due to not maintaining proper cybersecurity hygiene. I’m sorry to sound like the bitchy IT guy at your workplace, but make sure you have all the security controls set up on your KuCoin account, like your trading password and two-factor authentication. 

Other than these reasons above, here’s an example of a user on Reddit who lost his funds because KuCoin discontinued the cryptocurrency he was holding. 

Is my money safe on KuCoin?

It depends. For starters, you absolutely must have two-factor authentication set up. You need to have your trading password set, and you need to recognize your safety phrase each time you log in. 

Since KuCoin has a trifecta of safety features before you’re allowed to send your funds OFF of the exchange to another wallet, I’d say KuCoin’s safety built-in safety features outweigh those of Binance and even Coinbase. To send funds off the KuCoin platform, you need:

  • Your trading password
  • Two factor authentication, often just a text sent to your phone 
  • An email confirmation 
  • Be able to recognize your safety phrase

These features make it difficult for hackers and scammers to loot a few tokens from you. However, a hardware wallet like a Ledger Nano is the safest way to hold your cryptocurrency today. Nothing beats physically using a device and hitting buttons to send your crypto anywhere. 

If you don’t have your 2FA set up, there’s a much bigger chance you’ll get hacked. Many users open their accounts to see stolen funds gone. 

Exchange-wide hack history

KuCoin has had a few exchange hacks, just like all other major exchanges over the past few years. There’s an enormous incentive for criminals to go after exchanges holding millions in digital assets. Consider  2020 when hackers stole over $285M in funds from users

When these hacks happen on a grand scale, KuCoin will likely reimburse its users. CEO Johnny Liu came out and said that thanks to cooperation from law enforcement agencies and KuCoin’s insurers, all of the stolen funds could be recovered. 

Miraculously, all customer deposits were recovered. 

What to do if you think you’ve been hacked 

Get on KuCoin’s Reddit 

KuCoin has a very active Reddit community. If you post your issue in detail, you’ll likely see responses from moderators on the thread aiming to help you. Make sure you only communicate with moderators and verified accounts

BEWARE- REDDIT IS ROUTINELY PATROLLED BY SCAM ARTISTS LOOKING TO STEAL YOUR PERSONAL INFORMATION. DO NOT GIVE ANY OF YOUR INFORMATION AWAY TO REDDITORS

Reddit is great for solutions, but beware that lots of shitbags will drop into your DMs aiming to ‘help’. If they’re not a verified moderator, tell them to fuck off. It’s just someone trying to use your unfortunate situation to get your personal information and steal from you. 

Open a ticket with KuCoin support

KuCoin’s support is notoriously shoddy and slow to respond, but they’ve been getting better. KuCoin received over $100M in funding to grow their business in early 2022, so hopefully, they’re ramping up their customer support. 

Head over to KuCoin’s customer support portal and describe your issue thoroughly. If your funds were lost due to personal negligence (you gave away your information, you had a phishing attack, you sent crypto to the wrong crypto address), they’re unlikely to be able to help you. But always see what they have to say. 

Although I don’t believe KuCoin will reimburse your funds as Coinbase would, it’s still worth raising a ticket with their customer support and having them look into your case.

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